Budget Negotiators Contemplate Spending Increases

(Washington, D.C.) - Over a period of weeks, House and Senate budget negotiators have been meeting to try to come to agreement on a broad budget outline. If the two parties can arrive at a consensus plan, it would guide spending decisions for the remainder of the current fiscal year, and possibly beyond. It would also significantly reduce the chances of another government shutdown like the one that occurred in October. While the details are yet unclear, reports indicate that if there is a deal, it could include an increase in spending levels accompanied by new fees, or another approach that would increase federal revenues, in combination with spending cuts in mandatory programs.

Daniel Garza, Executive Director of The LIBRE Initiative released the following statement:

"Budget standoffs in Washington tend to increase uncertainty and harm economic growth. Therefore it's encouraging that both parties are working together to try to develop a spending plan to fund federal agencies going forward. That plan should stick to the bipartisan spending limits adopted in 2011 as part of a deal that authorized trillions of dollars in new federal borrowing. That plan included small, moderate cuts - which some in Congress now wish to replace with tax increases or increased fees that will ultimately be passed on to consumers. This is the wrong approach.

The American people recognize that Washington cannot simply keep adding to our $17 trillion debt. And the answer is not to go back on a commitment to spending discipline, or to raise taxes and fees - especially after adopting a $600 billion tax increase at the start of this year. Negotiators in both parties should remain committed to real fiscal restraint and focus on fixing Washington's spending problem."